Value of a website?
Discussion
Just a hypothetical question with random numbers.
Say you had an e comm website that turned over 100k net sales and was running around 30% PM with good organic traffic plus some light CPC with very nice low CPC and high CTR what would be the formula for putting a value on that site if you wanted to sell it?
Would normal "business rules" apply i.e 3-4 times profits or roughly 1x turn over?
Or is it going to be much less as its only a digital entity so just has a nominal value?
Say you had an e comm website that turned over 100k net sales and was running around 30% PM with good organic traffic plus some light CPC with very nice low CPC and high CTR what would be the formula for putting a value on that site if you wanted to sell it?
Would normal "business rules" apply i.e 3-4 times profits or roughly 1x turn over?
Or is it going to be much less as its only a digital entity so just has a nominal value?
Hm, ok.
Basically I was thinking about building a website that does everything the above does but with a generic name. ABC Trading or whatever.
Then the plan would be to build this up and sell it off in a few years time when we retire.
We cant really sell our current one as its very much brand specific so would not be of interest to other businesses. However a year or 2 before we retire I could migrate our site to this new site, IYSWIM... then offer it for sale with the inclusion of the old site which they could take also but would not want to use the name as it is of no use to them but the new one might be.
Not sure if that makes sense.
I don't really want to go to all that effort though if its not really going to be worth doing.
Basically I was thinking about building a website that does everything the above does but with a generic name. ABC Trading or whatever.
Then the plan would be to build this up and sell it off in a few years time when we retire.
We cant really sell our current one as its very much brand specific so would not be of interest to other businesses. However a year or 2 before we retire I could migrate our site to this new site, IYSWIM... then offer it for sale with the inclusion of the old site which they could take also but would not want to use the name as it is of no use to them but the new one might be.
Not sure if that makes sense.
I don't really want to go to all that effort though if its not really going to be worth doing.
red_slr said:
Hm, ok.
Basically I was thinking about building a website that does everything the above does but with a generic name. ABC Trading or whatever.
Then the plan would be to build this up and sell it off in a few years time when we retire.
We cant really sell our current one as its very much brand specific so would not be of interest to other businesses. However a year or 2 before we retire I could migrate our site to this new site, IYSWIM... then offer it for sale with the inclusion of the old site which they could take also but would not want to use the name as it is of no use to them but the new one might be.
Not sure if that makes sense.
I don't really want to go to all that effort though if its not really going to be worth doing.
Basically I was thinking about building a website that does everything the above does but with a generic name. ABC Trading or whatever.
Then the plan would be to build this up and sell it off in a few years time when we retire.
We cant really sell our current one as its very much brand specific so would not be of interest to other businesses. However a year or 2 before we retire I could migrate our site to this new site, IYSWIM... then offer it for sale with the inclusion of the old site which they could take also but would not want to use the name as it is of no use to them but the new one might be.
Not sure if that makes sense.
I don't really want to go to all that effort though if its not really going to be worth doing.
Why go to all that effort when you can just set up a mirror of your current site under a different, desirable, domain name?
I would say the product, source and barrier to entry are more valuable than the site and marketing.
Empire flippers astound me and I can't believe people buy the sites for the amount asked.
I agree to mirror a site is low cost and set it up with light marketing simple enough but to get it trading will take far more effort these days than ever before - even bigger brands stop dead without constant marketing push.
If it's a product that can be sold via influencer strategy that could be a quick win.
Empire flippers astound me and I can't believe people buy the sites for the amount asked.
I agree to mirror a site is low cost and set it up with light marketing simple enough but to get it trading will take far more effort these days than ever before - even bigger brands stop dead without constant marketing push.
If it's a product that can be sold via influencer strategy that could be a quick win.
DSLiverpool said:
I would say the product, source and barrier to entry are more valuable than the site and marketing.
Empire flippers astound me and I can't believe people buy the sites for the amount asked.
I agree to mirror a site is low cost and set it up with light marketing simple enough but to get it trading will take far more effort these days than ever before - even bigger brands stop dead without constant marketing push.
If it's a product that can be sold via influencer strategy that could be a quick win.
Its tricky to explain what I am trying to do but basically I am pretty sure our competitors would want our website. I just don't think they would want it with the name. That's why I was thinking of unbranding so to speak.Empire flippers astound me and I can't believe people buy the sites for the amount asked.
I agree to mirror a site is low cost and set it up with light marketing simple enough but to get it trading will take far more effort these days than ever before - even bigger brands stop dead without constant marketing push.
If it's a product that can be sold via influencer strategy that could be a quick win.
red_slr said:
Its tricky to explain what I am trying to do but basically I am pretty sure our competitors would want our website. I just don't think they would want it with the name. That's why I was thinking of unbranding so to speak.
Presumably they have their own web addresses so they could use their existing URLs with your site.Without knowing more it's hard to answer accurately but assuming you sell widgets, set up another site on say big commerce or my favourite Shopify and compete with yourself.
You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
DSLiverpool said:
Without knowing more it's hard to answer accurately but assuming you sell widgets, set up another site on say big commerce or my favourite Shopify and compete with yourself.
You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
That's exactly what I was thinking, will mull it over! Probably look to build something over Christmas.You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
red_slr said:
DSLiverpool said:
Without knowing more it's hard to answer accurately but assuming you sell widgets, set up another site on say big commerce or my favourite Shopify and compete with yourself.
You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
That's exactly what I was thinking, will mull it over! Probably look to build something over Christmas.You can make it light on content to start and build it up with individual separate content as you go as your in no hurry for sales. You can also experiment with none obvious marketing and if shopify you can tune the Seo per page easily up yourself.
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